ASIA

India releases 18 new blocks in NELP-V bidding round

INDIA’S Oil and Natural Gas Corporation and Reliance Industries have won most of the 18 new exploration blocks awarded by the Indian government.

India releases 18 new blocks in NELP-V bidding round

State-owned ONGC and its partners, including British oil explorer Cairn Energy, were yesterday awarded eight blocks; while private-sector oil explorer Reliance, along with long-time partner Niko Resources of Canada and UK-based Hardy Oil and Gas Exploration, won five blocks.

ONGC chairman Subir Raha has said Cairn Energy's partnership was vital because of its success in Rajasthan, where it has discovered over two billion barrels of oil. ONGC would also be working with Italy's Eni for the first time in one of the Rajasthan blocks.

Niko Resources and fellow Canadian explorer Geoglobal Resources also won two onshore blocks separately.

Government-owned gas transporter GAIL (India), Gujarat State Petroleum Corporation and Geoglobal won one onshore block; Phoenix Overseas and Birckbeck Investment won another; and Oil India and Hindustan Petroleum Corporation took a third onshore block.

The Indian government’s oil ministry offered a total of 20 blocks - 12 onshore, two shallow water and six deepwater blocks, covering an area of about 109,210 square kilometres – but has yet to award two further onshore blocks in the north-east of the country.

The new permits were in the fifth round of India’s New Exploration and Licensing Policy (NELP-V).

The oil ministry said total initial investment indicated by the successful bidders in their work programs was about US$380 million, which could increase to roughly US$867 million later.

Unsuccessful bidders included Britain’s BP Plc, Brazil's Petrobras and Malaysia's Petronas.

India currently imports about 70% of its petroleum needs. It is increasing its domestic exploration efforts and seeking equity in overseas oil projects.

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